Sam Bankman-Fried arrested and consented to the extradition — Law Decoded, Dec. 12-19.
Welcome to Law Decoded, your weekly digest of all the major developments in the field of regulation.
The FTX drama escalated last week when the Royal Bahamas Police Force arrested its former CEO, Sam Bankman-Fried, at the request of the United States government. Within hours, politicians, crypto executives and influencers had all booted up their Twitter apps to comment on the arrest of the former CEO, who had to miss his testimony before the U.S. Congress. However, the text of SBF’s planned testimony was obtained by the media, wherein he blamed the inclusion of FTX.US in the Chapter 11 bankruptcy on John J. Ray III, a restructuring lawyer who assumed the role of FTX CEO after the bankruptcy filing.
The body of allegations against FTX and SBF personally is stacking up. The United States Securities and Exchange Commission (SEC) charged Bankman-Fried with violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. At the same time, the Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Sam Bankman-Fried, FTX and Alameda Research, claiming violations of the Commodity Exchange Act and demanding a jury trial. A fresh indictment, signed by United States Attorney for the Southern District of New York Damian Williams, is 14 pages long and contains eight counts.
Bankman-Fried reportedly reconsidered his earlier decision to contest extradition and is expected to appear in court in the Bahamas on Dec. 19 to seek a reversal. By consenting to extradition, he would be able to appear in a United States court, where If convicted, he could get up to 115 years in jail. However, there is a “lot to play out” in the case until he gets a final sentence within the next few months
Read more on cointelegraph.com
